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FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[x] Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended June 30, 1995.
[ ] Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from___________________to_____________.
Commission File Number: 0-13193
CABLE TV FUND 12-A, LTD.
_____________________________________________________________________________
Exact name of registrant as specified in charter
Colorado #84-0968104
State of organization I.R.S. employer I.D. #
9697 East Mineral Avenue, P.O. Box 3309, Englewood, Colorado 80155-3309
Address of principal executive office
(303) 792-3111
Registrant's telephone number
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No ____
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CABLE TV FUND 12-A, LTD.
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
June 30, December 31,
ASSETS 1995 1994
------ ------------ ------------
CASH $ 130,563 $ 578,657
TRADE RECEIVABLES, less allowance for
doubtful receivables of $27,707 and $32,813
at June 30, 1995 and December 31, 1994,
respectively 361,965 374,817
INVESTMENT IN CABLE TELEVISION PROPERTIES:
Property, plant and equipment, at cost 75,448,191 72,891,760
Less- accumulated depreciation (43,748,511) (40,728,415)
------------ ------------
31,699,680 32,163,345
Franchise costs, net of accumulated amortization
of $20,556,132 and $20,131,554 at June 30, 1995
and December 31, 1994, respectively 2,795,990 3,220,568
Subscriber lists, net of accumulated amortization
of $11,578,616 and $11,411,057 at June 30, 1995
and December 31, 1994, respectively 32,249 199,808
------------ ------------
Total investment in cable
television properties 34,527,919 35,583,721
DEPOSITS, PREPAID EXPENSES AND DEFERRED CHARGES 319,733 187,946
------------ ------------
Total assets $ 35,340,180 $ 36,725,141
============ ============
The accompanying notes to unaudited financial statements
are an integral part of these balance sheets.
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CABLE TV FUND 12-A, LTD.
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
June 30, December 31,
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) 1995 1994
------------------------------------------- ------------ ------------
LIABILITIES:
Debt $ 26,209,537 $ 26,402,399
Accounts payable-
Trade 1,763 30,848
General Partner 248,586 1,305,933
Accrued liabilities 1,313,679 1,317,298
Subscriber prepayments 160,493 131,152
------------ ------------
Total liabilities 27,934,058 29,187,630
------------ ------------
PARTNERS' CAPITAL (DEFICIT):
General Partner-
Contributed capital 1,000 1,000
Accumulated deficit (374,447) (373,133)
------------ ------------
(373,447) (372,133)
------------ ------------
Limited Partners-
Net contributed capital (104,000 units
outstanding at June 30, 1995 and
December 31, 1994) 44,619,655 44,619,655
Accumulated deficit (36,840,086) (36,710,011)
------------ ------------
7,779,569 7,909,644
Total liabilities and ------------ ------------
partners' capital (deficit) $ 35,340,180 $ 36,725,141
============ ============
The accompanying notes to unaudited financial statements
are an integral part of these balance sheets.
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CABLE TV FUND 12-A, LTD.
(A Limited Partnership)
UNAUDITED STATEMENTS OF OPERATIONS
For the Three Months Ended For the Six Months Ended
June 30, June 30,
---------------------------- --------------------------------
1995 1994 1995 1994
---------- ---------- ----------- -----------
REVENUES $8,040,755 $7,303,783 $15,904,353 $14,604,523
COSTS AND EXPENSES:
Operating expenses 4,666,885 4,369,805 9,354,593 8,450,065
Management fees and
allocated overhead
from General Partner 933,854 919,044 1,928,660 1,850,107
Depreciation and
amortization 1,802,778 1,782,501 3,636,752 3,602,791
---------- ---------- ----------- -----------
OPERATING INCOME 637,238 232,433 984,348 701,560
---------- ---------- ----------- -----------
OTHER INCOME (EXPENSE):
Interest expense (517,773) (425,779) (1,040,386) (797,179)
Other, net (48,746) (63,707) (75,351) (75,218)
---------- ---------- ----------- ----------
Total other income
(expense), net (566,519) (489,486) (1,115,737) (872,397)
---------- ---------- ----------- ----------
NET INCOME (LOSS) $ 70,719 $ (257,053) $ (131,389) $ (170,837)
========== ========== =========== ==========
ALLOCATION OF NET
INCOME (LOSS):
General Partner $ 707 $ (2,571) $ (1,314) $ (1,708)
========== ========== =========== ==========
Limited Partners $ 70,012 $ (254,482) $ (130,075) $ (169,129)
========== ========== =========== ==========
NET INCOME (LOSS) PER
LIMITED PARTNERSHIP UNIT $ .67 $ (2.45) $ (1.25) $ (1.63)
========== ========== ============ ===========
WEIGHTED AVERAGE NUMBER
OF LIMITED PARTNERSHIP
UNITS OUTSTANDING 104,000 104,000 104,000 104,000
========= ========== ============ ===========
The accompanying notes to unaudited financial statements
are an integral part of these statements.
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CABLE TV FUND 12-A, LTD.
(A Limited Partnership)
UNAUDITED STATEMENTS OF CASH FLOWS
For the Six Months Ended
June 30,
1995 1994
------------ -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (131,389) $ (170,837)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization 3,636,752 3,602,791
Amortization of interest rate protection
contract 25,002 25,002
Decrease (increase) in trade receivables 12,852 (88,383)
(Increase) decrease in deposits, prepaid expenses and
deferred charges (181,308) 12,588
(Decrease) increase in amount due General Partner (1,057,347) 330,458
Decrease in trade accounts payable,
accrued liabilities and subscriber prepayments (3,363) (55,783)
Net cash provided by operating activities 2,301,199 3,655,836
------------ -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment, net (2,556,431) (2,200,705)
------------ -----------
Net cash used in investing activities (2,556,431) (2,200,705)
------------ -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings 28,015,986 49,816
Repayment of debt (28,208,848) (2,313,514)
Net cash used in financing activities (192,862) (2,263,698)
------------ -----------
Decrease in cash (448,094) (808,567)
Cash, beginning of period 578,657 1,610,187
------------ -----------
Cash, end of period $ 130,563 $ 801,620
============ ===========
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid $ 909,460 $ 780,777
============ ===========
The accompanying notes to unaudited financial statements
are an integral part of these statements.
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CABLE TV FUND 12-A, LTD.
(A Limited Partnership)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
(1) This Form 10-Q is being filed in conformity with the SEC requirements for
unaudited financial statements and does not contain all of the necessary
footnote disclosures required for a fair presentation of the Balance Sheets and
Statements of Operations and Cash Flows in conformity with generally accepted
accounting principles. However, in the opinion of management, this data
includes all adjustments, consisting only of normal recurring accruals,
necessary to present fairly the financial position of Cable TV Fund 12-A (the
"Partnership") at June 30, 1995 and December 31, 1994, its Statements of
Operations for the three and six month periods ended June 30, 1995 and 1994 and
its Statements of Cash Flows for the six month periods ended June 30, 1995 and
1994. Results of operations for these periods are not necessarily indicative
of results to be expected for the full year.
The Partnership owns and operates the cable television systems serving
areas in and around Fort Myers, Florida; Lake County, Illinois; and Orland
Park/Park Forest, Illinois.
(2) Jones Intercable, Inc. (the "General Partner"), a publicly held
Colorado corporation, manages the Partnership and receives a fee for its
services equal to 5 percent of the gross revenues of the Partnership, excluding
revenues from the sale of cable television systems or franchises. Management
fees for the three and six month periods ended June 30, 1995 were $402,038 and
$795,218, respectively, as compared to $365,189 and $730,226, respectively, for
the similar 1994 periods.
The Partnership reimburses the General Partner for certain allocated
overhead and administrative expenses. These expenses consist primarily of
salaries and benefits paid to corporate personnel, rent, data processing
services and other facilities costs. Such personnel provide engineering,
marketing, administrative, accounting, legal and investor relations services to
the Partnership. Allocations of personnel costs are based primarily on actual
time spent by employees of the General Partner with respect to each partnership
managed. Remaining expenses are allocated based on the pro rata relationship
of the Partnership's revenues to the total revenues of all systems owned or
managed by the General Partner, and certain of its subsidiaries. Systems owned
by the General Partner and all other systems owned by partnerships for which
Jones Intercable, Inc. is the general partner are also allocated a
proportionate share of these expenses. The General Partner believes that the
methodology used in allocating overhead and administrative expenses is
reasonable. Amounts charged the Partnership by the General Partner for
allocated overhead and administrative expenses for the three and six month
periods ended June 30, 1995 were $531,816 and $1,133,442, respectively, as
compared to $553,855 and $1,119,881, respectively, for the similar 1994
periods.
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CABLE TV FUND 12-A, LTD.
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FINANCIAL CONDITION
For the six months ended June 30, 1995, the Partnership generated net
cash from operating activities totaling $2,901,199, which is available to fund
capital expenditures and non-operating costs. Capital expenditures totaled
approximately $2,556,000 during the first six months of 1995. Approximately 30
percent of these expenditures related to the construction of service drops to
subscribers' homes. Approximately 20 percent of the expenditures related to
the construction of new cable plant and approximately 9 percent of these
expenditures was for pay security equipment. The remaining expenditures were
used for various enhancements in the Partnership's systems. Funding for these
expenditures was provided by cash generated from operations. Anticipated
capital expenditures for the remainder of 1995 are approximately $2,100,000.
Approximately 37 percent is expected to be used to continue construction of new
cable plant and approximately 34 percent will be used for the construction of
service drops to subscribers' homes. The remainder of the anticipated
expenditures is expected to be used for various enhancements in all of the
Partnership's systems. Funding for these expenditures is expected to be
provided by cash generated from operations and borrowings available under the
Partnership's credit facility discussed below.
On January 30, 1995, the Partnership entered into a $30,000,000
revolving credit facility and repaid $26,125,000 outstanding under its previous
term loan. Under the terms of the agreement, the revolving credit facility
will expire on December 31, 1996, at which time the then-outstanding balance
will convert to a term loan. The term loan will be payable in 20 consecutive
quarterly installments that will commence on March 31, 1997. At June 30, 1995,
$26,000,000 was outstanding under this credit facility. Generally, interest
payable on amounts borrowed under the revolving credit facility is at the
Partnership's option of Prime or a fixed rate defined as the Euro-Rate plus 1
percent. The effective interest rates on outstanding obligations as of June
30, 1995 and 1994 were 7.19 percent and 5.82 percent, respectively.
In January 1993, the Partnership entered into an interest rate cap
agreement covering outstanding debt obligations of $15,000,000. The
Partnership paid a fee of $150,000. The agreement protects the Partnership
from a three month LIBOR interest rate that exceeds 7 percent for three years
from the date of the agreement.
The General Partner believes that the Partnership has sufficient
sources of capital from cash on hand, cash generated from operations and
borrowings available under its credit facility to meet its presently
anticipated needs.
RESULTS OF OPERATIONS
Revenues of the Partnership increased $736,972, or approximately 10
percent, to $8,040,755 for the three month period ended June 30, 1995 from
$7,303,783 for the comparable 1994 period. Revenues of the Partnership
increased $1,299,830, or approximately 9 percent, to $15,904,353 for the six
month period ended June 30, 1995 from $14,604,523 for the comparable 1994
period. The Partnership has added approximately 4,770 basic subscribers since
June 30, 1994, an increase of approximately 7 percent. The number of basic
subscribers totaled 71,873 at June 30, 1995 compared to 67,103 at June 30,
1994. The increase in the number of basic subscribers accounted for
approximately 46 percent and 54 percent, respectively, of the increase in
revenues for the three and six month periods. Basic service rate adjustments
implemented in all of the Partnership's systems accounted for approximately 29
percent and 33 percent, respectively, of the increase for the three and six
month periods. Advertising revenues accounted for approximately 12 percent of
the increase in revenues for both the three and six month periods. No other
individual factor was significant to the increase in revenues.
Operating expenses consist primarily of costs associated with the
administration of the Partnership's cable television systems. The principal
cost components are salaries paid to system personnel, programming expenses,
professional fees, subscriber billing costs, rent for leased facilities, cable
system maintenance expenses and consumer marketing expenses.
Operating expenses increased $297,080, or approximately 7 percent, to
$4,666,885 for the three month period ended June 30, 1995 from $4,369,805 for
the comparable 1994 period. Operating expenses represented approximately 58
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percent of revenue for the second quarter of 1995 compared to approximately 60
percent of revenue for the same period in 1994. Operating expenses increased
$904,528, or approximately 11 percent, to $9,354,593 for the six month period
ended June 30, 1995 from $8,450,065 for the comparable 1994 period. This
expense represented 59 percent and 58 percent of revenue for the six month
periods ended June 30, 1995 and 1994, respectively. Increases in programming
costs accounted for approximately 76 percent and 49 percent of the increase in
operating expenses for the three and six month periods ended June 30, 1995,
respectively, and were due, in part, to the increase in the subscriber base.
No other individual factor was significant to the increase in operating
expenses.
Management fees and allocated overhead from the General Partner
increased $14,810, or approximately 2 percent, to $933,854 for the three month
period ended June 30, 1995 from $919,044 for the comparable 1994 period.
Management fees and allocated overhead from the General Partner increased
$78,553, or approximately 4 percent, to $1,928,660 for the six month period
ended June 30, 1995 from $1,850,107 for the comparable 1994 period. These
increases were due to an increase in revenues, upon which such fees and
allocations are based.
Depreciation and amortization expense increased $20,277, or
approximately 1 percent, to $1,802,778 for the three month period ended June
30, 1995 from $1,782,501 for the comparable 1994 period. Depreciation and
amortization increased $33,961, or approximately 1 percent, to $3,636,752 for
the six month period ended June 30, 1995 from $3,602,791 for the comparable
1994 period. These increases were due to additions to the Partnership's asset
base.
Operating income increased $404,805, to $637,238 for the three month
period ended June 30, 1995 from $232,433 for 1994. For the six month periods,
operating income increased $282,788, or approximately 40 percent, to $984,348
in 1995 from $701,560 in 1994. These increases were due to the increases in
revenue exceeding the increases in operating expenses and management fees and
allocated overhead from the General Partner and depreciation and amortization
expense. Operating income before depreciation and amortization increased
$425,082, or approximately 21 percent, to $2,440,016 for the three months ended
June 30, 1995 from $2,014,934 for the similar period in 1994. Operating income
before depreciation and amortization increased $316,749, or approximately 7
percent, to $4,621,100 for the six month period ended June 30, 1995 from
$4,304,351 for the comparable 1994 period. These increases were due to the
increases in revenues exceeding the increases in operating expenses and
management fees and allocated overhead from the General Partner.
Interest expense increased $91,994, or approximately 22 percent, to
$517,773 for the three month period ended June 30, 1995 from $425,779 for the
comparable 1994 period. Interest expense increased $243,207, or approximately
31 percent to $1,040,386 for the six month period ended June 30, 1995 from
$797,179 for the comparable 1994 period. These increases were due to higher
effective interest rates and higher outstanding balances on interest bearing
obligations.
The Partnership recorded net income of $70,719 for the three month
period ended June 30, 1995, compared to a net loss of $257,053 for the
comparable 1994 period. The Partnership recorded a net loss of $131,389 and
$170,837 for the six month periods ended June 30, 1995 and 1994, respectively.
The increases in net income are due to the factors discussed above.
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Part II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
a) Exhibits
27) Financial Data Schedule
b) Reports on Form 8-K
None
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CABLE TV FUND 12-A, LTD.
BY: JONES INTERCABLE, INC.
General Partner
By: /S/ Kevin P. Coyle
------------------------------
Kevin P. Coyle
Group Vice President/Finance
(Principal Financial Officer)
Dated: August 11, 1995
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EXHIBIT INDEX
Exhibit No. Exhibit Description Page
- ----------- ------------------- ----
27 Financial Data Schedule